Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Dynamic Capabilities ◽  
It Governance ◽  
Environmental Uncertainty ◽  
Governance Mechanism ◽  
Turbulent Environment ◽  
Content Type ◽  
It Capability ◽  
Innovative Capability

PurposeWith the ever-growing turbulent business setting, there is a great interest to study how a firm tailors information technology (IT) capability to shape agility and innovation capability to stay ahead of the competition. This study examines how IT governance and IT capability can be tailored to achieve firm performance through agility and innovative capability in a turbulent environment.Design/methodology/approachDrawing on the dynamic capability theory, this study based on the primary survey data of 253 responses from senior IT and business executives in China proves the hypothesized relationship in the proposed model.FindingsThis study shows that the IT governance mechanism positively impacts on IT-enabled dynamic capabilities. Further, IT-enabled dynamic capabilities positively impact on agility and innovative capability that in turn support to achieve firm performance. The environmental uncertainty is only significant in the IT-enabled dynamic capabilities–business process agility relationship.Research limitations/implicationsThis study suggests corporate leaders and executives to better exploit their resources and tailor IT capabilities in the turbulent environment. Further, this study offers theoretical and practical implications.Originality/valueThis study proposes ways for executives to examine the multifaceted nature of environmental uncertainty to achieve agility, innovation and firm performance rather than simply investing in IT.

scholarly journals Dynamic capabilities for firm performance under the information technology governance framework

2020 ◽  
Vol 32 (2) ◽  
pp. 129-157 ◽  
Author(s):  
Sabine Khalil ◽  
Maksim Belitski
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Dynamic Capabilities ◽  
It Governance ◽  
Content Type ◽  
Governance Framework ◽  
Technology Governance ◽  
The Uk ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to investigate the role of dynamic capabilities in the Information Technology (IT) Governance view framework and explores the relationship between three domains of IT governance (Strategy, Management and Operations) and firm performance. Design/methodology/approach In this study, the authors used a mixed methods approach and using a survey instrument and its validation with interviews, to collect data from 134 successful European SMEs in the multi-country setting of Belgium, Bulgaria, Denmark, Spain and the UK. Findings The findings show that various IT governance mechanisms function as dynamic capabilities and are directly associated with firm performance. The impact of each mechanism is different. Originality/value This study highlights the relationship between IT governance acumens and organisational performance. It contributes to the field of IT Governance Framework in management, and the results may be generalisable to wider economies and different organisation types.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Company Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Competitive Intensity ◽  
Content Type ◽  
Impact Performance

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

How to be agile: the distinctive roles of IT capabilities for knowledge management and process integration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
One-Ki Daniel Lee ◽  
Peng Xu ◽  
Jean-Pierre Kuilboer ◽  
Noushin Ashrafi
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Process Integration ◽  
Negative Impact ◽  
Market Competition ◽  
The United States ◽  
Strategic Decision ◽  
Content Type ◽  
It Capability ◽  
It Capabilities

PurposeThe purpose of this study is to understand how IT capabilities for knowledge management and process integration can build a firm's agile process capabilities for sensing, strategic decision and responding. The study also investigates how the three agile capabilities affect firm performance in different competitive environments.Design/methodology/approachThis study conducted a large-scale field survey with firms in the United States. Survey invitations were sent to business executives of the target firms. A total of 254 complete samples were collected for our hypotheses test.FindingsThe results confirm the overall significant roles of IT capabilities in the three agile capabilities. The results further reveal that the IT capability for knowledge management has a higher influence on sensing capability, while the IT capability for process integration has a higher influence on responding capability. Moreover, strategic decision and responding capabilities are more important in the high market competition. However, in the low market competition, sensing capability becomes more important while responding capability demonstrates a negative impact on firm performance.Originality/valueThis study helps both academics and practitioners better understand a firm's IT-agility-performance mechanism. Particularly, our findings guide how to achieve agile capabilities and what to focus on under the different levels of market competition.

Examining the role of logistics 4.0 enabled dynamic capabilities on firm performance

2020 ◽  
Vol 31 (3) ◽  
pp. 607-628 ◽  
Author(s):  
Surajit Bag ◽  
Shivam Gupta ◽  
Zongwei Luo
Keyword(s):  
Firm Performance ◽  
Operations Management ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Organizational Capabilities ◽  
Technological Capabilities ◽  
Capability Development ◽  
Content Type ◽  
Questionnaire Online ◽  
Survey Responses

PurposeThe study investigates the effect of technological capabilities, organizational capabilities and environmental capabilities on Logistics 4.0 capabilities and also examines the effect of Logistics 4.0 capabilities on firm performance.Design/methodology/approachThe proposed theoretical framework is tested using WarpPLS 6.0 software. We selected samples from the Automotive Component and Allied Manufacturers in South Africa. Initially, we sent the structured questionnaire online using Google forms to 800 potential respondents. After doing follow ups, we received 230 completed survey responses. Further, data preparation is done using established scientific approach and we checked suitability of its use in structural equation modelling. After ensuring all necessary checks are completed, the results are found satisfactory to further proceed with testing of research hypotheses.FindingsIt is observed that technological capabilities, organizational capabilities and environmental capabilities show significant effect on Logistics 4.0 capabilities. However, the outcome of technological capabilities and environmental capabilities on Logistics 4.0 capabilities (ß = 0.27) is found stronger than organizational capabilities. Logistics 4.0 capabilities shows significant effect on firm performance.Practical implicationsIt is important that the sustainability goals are aligned with Logistics 4.0 strategies. Managers need to increase focus towards development of Logistics 4.0 dynamic capabilities that enhance agility and responsiveness in the supply chain. Managers should check the financial performance and market conditions continuously to further review logistics performance as this can influence the overall firm performance.Originality/valueThis study advances the literature on Logistics 4.0 applications in operations management by investigating the key links such as Logistics 4.0 capability development and firm performance.

Understanding cloud computing success and its impact on firm performance: an integrated approach

2020 ◽  
Vol 120 (5) ◽  
pp. 963-985 ◽  
Author(s):  
Abul Khayer ◽  
Yukun Bao ◽  
Bang Nguyen
Keyword(s):  
Cloud Computing ◽  
Information Systems ◽  
Firm Performance ◽  
User Satisfaction ◽  
Information Quality ◽  
Equation Modeling ◽  
Successful Implementation ◽  
System Quality ◽  
Content Type ◽  
It Capability

PurposeThis study aims to investigate the determinants of successful implementation of cloud computing and, further, examines how cloud computing success influences firm performance.Design/methodology/approachThe authors developed a conceptual framework based on the integration of several strands of literature in business studies and information systems. To test the proposed model, data were collected from 300 Chinese firms which have adopted cloud computing. To analyze the data, partial least squares structural equation modeling (PLS-SEM) was used. An importance-performance map analysis (IPMA) was also conducted to identify the critical factors that exhibit high importance but low performance.FindingsThe results of the study revealed that end-user satisfaction, information quality, system quality, managerial information technology (IT) capability and technical IT capability significantly affect cloud computing success. Additionally, cloud computing success has a strong and positive impact on firm performance. IPMA further confirms that managers need to concentrate more on system quality, information quality, user satisfaction and technical IT capability.Originality/valueThis paper is one of the few attempts to integrate several theoretical frameworks (i.e. IT capabilities and resource-based view, expectation-confirmation theory, and information system success theory) to develop a comprehensive model for understanding the key determinants of cloud computing success and its impact on firm performance. This study makes a useful contribution to the conventional information systems (IS) literature and IT management practice.

Entrepreneurial actions: implications for firm performance

2019 ◽  
Vol 26 (5) ◽  
pp. 706-725
Author(s):  
Curtis Sproul ◽  
Kevin Cox ◽  
Amanda Ross
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Fixed Effects ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Competitive Dynamics ◽  
Human Capital Development ◽  
Content Type ◽  
Entrepreneurial Action ◽  
Capital Development

Purpose The purpose of this paper is to investigate different types of investment actions undertaken by entrepreneurial firms to determine how these actions influence performance. Specifically, the effects of entrepreneurial action with regards to investments in human capital, the capabilities of the firm and the competitive dynamics of the business relative to other firms are examined. These actions are examined in conjunction with the offering of products, services or both, to determine the benefits of specific actions for firms. Design/methodology/approach The sample is taken from the confidential version of the Kauffman Firm Survey (KFS). The data are analyzed using a fixed effects model. Findings Results show that investment in human capital development actions and capability development actions improve firm performance. Further, investment in human capital development actions is shown to have the largest positive impact on the performance of firms that offer products only. Competitive positions actions have the greatest positive impact on firms that offer products and services. Research limitations/implications Results contribute to multiple theoretical lenses within the context of entrepreneurship and demonstrate applicability of theory related to entrepreneurial action to other established theories. Findings also demonstrate that different entrepreneurial actions benefit firms that offer products or services in different ways. Limitations of the study are those associated with survey research generally, such as self-reported measures, non-response bias and the KFS specifically such as survivorship bias and variance in survey items across years. Originality/value The consideration of firms whose primary focus is the selling of products compared to services and how they moderate specific actions is novel and valuable. Theoretical development tying human capital, competitive dynamics and dynamic capabilities to entrepreneurial action creates new avenues for inquiry.

The moderating role of information technology capability in the relationship between supply chain collaboration and organizational responsiveness

2016 ◽  
Vol 36 (10) ◽  
pp. 1247-1271 ◽  
Author(s):  
Zhao Cai ◽  
Qian Huang ◽  
Hefu Liu ◽  
Liang Liang
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Hierarchical Regression ◽  
Supply Chain Collaboration ◽  
Organizational Responsiveness ◽  
Content Type ◽  
It Capability ◽  
Types Of Information ◽  
Information Technology Capability ◽  
The Relationship

Purpose The purpose of this paper is to propose a model to test the relationship between supply chain collaboration (SCC) and organizational responsiveness. Three types of information technology (IT) capability are considered as moderators in this relationship. Design/methodology/approach The study conducted a questionnaire survey of 208 firms from various industries in China. Hierarchical regression analysis was used to test the hypotheses. Findings SCC positively affects organizational responsiveness. Both outside-in and spanning IT capability positively moderates this relationship, whereas inside-out IT capability has a negative moderating effect on this relationship. Originality/value This research extends the knowledge regarding the value creation process of SCC from an organizational learning perspective. The study explores the moderating roles of three types of IT capability in this process and further clarifies the relationship between SCC and organizational responsiveness.

scholarly journals Designing competitivity activity model through the strategic agility approach in a turbulent environment

foresight ◽  
2016 ◽  
Vol 18 (6) ◽  
pp. 625-648 ◽  
Author(s):  
Emidia Vagnoni ◽  
Soheila Khoddami
Keyword(s):  
Dynamic Capabilities ◽  
Three Dimensions ◽  
Turbulent Environment ◽  
Content Type ◽  
Entrepreneurial Alertness ◽  
Business Executives ◽  
Competitive Activity ◽  
Strategic Agility ◽  
Competitive Activities ◽  
Study Offer

Purpose This paper aims to introduce and test a model of shaping strategic agility based on dynamic capabilities such as information technology (IT) competencies, entrepreneurial alertness and acuity market to improve firms’ competitive activity. Design/methodology/approach A study based on a quantitative approach has been designed. Data have been collected through closed questionnaires from a sample of firms. The study has been conducted in the electronics industry in Italy based on the dynamism of the setting. Through SPSS-AMOS application, path analysis has been performed to conduct a first assessment of the theoretical model. Findings The dimensions of strategic agility are relevant capabilities for improving competitive activity. Furthermore, increasing strategic agility in the three dimensions (customer, operational and partnering) depends on the ability to improve other dynamic capabilities of the organization, including IT competency, systematic insight and strategic foresight. Finally, strategic agility results to be the only variable able to leverage the firm’s competitive activity. Research limitations/implications The study presents some limitations linked to the response rate and the ability to conduct further analysis. However, it highlights the main dimensions that managers and entrepreneurs should develop to improve the competitive activities of the firm. Practical implications The paper addresses practitioners’ need to identify the main variable to leverage in order to increase firms’ competitivity. Social implications The results of the study offer the opportunity for new reflections when designing business executives’ training programs and defining recruitment pathways. Originality/value This is the first study that investigates strategic agility building in a turbulent environment in the Italian setting.

A study of network-building HR practices for TMT, strategic flexibility and firm performance

2014 ◽  
Vol 5 (1) ◽  
pp. 95-114 ◽  
Author(s):  
Yaqing Lin ◽  
Shuming Zhao ◽  
Na Li
Keyword(s):  
Firm Performance ◽  
Transition Economy ◽  
Environmental Uncertainty ◽  
Strategic Flexibility ◽  
Content Type ◽  
Mediating Role ◽  
Positive Effects ◽  
Hr Practices ◽  
Network Building ◽  
The Relationship

Purpose – The purpose of this study is to introduce strategic flexibility as an important dynamic capability into the field of strategic human resource management (SHRM) and explore its mediating role between network-building HR practices for top management team (TMT) and firm performance. Moreover, based on the context of transition economy in China, the authors examine environmental uncertainty as a moderator in these relationships and empirically test the questions above. Design/methodology/approach – The authors have conducted questionnaire surveys on 780 top managers in 390 companies mainly located in Beijing, Tianjin, Shanghai, Jiangsu and Zhejiang and finally received 241 valid samples. Findings – The results show that network-building HR practices have positive effects on firm performance and strategic flexibility plays a fully mediating role between them. In addition, environmental uncertainty moderates the relationship between network-building HR practices for TMT and strategic flexibility, while it has no moderating effect in the relationship between strategic flexibility and firm performance. Originality/value – These conclusions have important implications for the development and application of SHRM in dynamic environments. Theoretically, the authors enrich the functions of network-building HR practices for TMT and provide the evidence to advocate the development of the innovative HR practices in China. In terms of the practical implications of the study, it is argued that network-building HR practices for TMT and strategic flexibility can help firms to deal with uncertainty and achieve high performance, which provides constructive guidance in the development of enterprises in the China's transition economy.

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